INDIA. Investments. Internet and computing in India

Contents

Introduction 4

PART 1: INDIA 4

1. Foreign Policies 4

a) Foreign trade policy 4

b) Foreign policy development 5

c) Main point of the foreign policy 5

d) Features of the government's foreign investment policies and incentives offered by it 6

2. Investments 6

a) India's international trade: 6

b) Foreign investment framework 6

c) FDI 7

3. Factors favoring India’s productivity 7

a) Skilled Manpower 7

b) Huge market 7

c) Infrastructure inversion 8

4. Internet and computing in India 9

a) India: a fast-growing internet services market in years-to-come 9

b) Indian Users Habits (source: Boston Consulting Group Reports) 9

c) Cloud-computing services: fundamental aspects leading to its success 10

5. Threats and opportunities of India 11

a) Threats 11

b) Opportunities 11

PART 2: CISCO 13

6. Information about Cisco: 13

a) Cisco: global presentation of the company 13

b) Cisco India 13

c) New activities of Cisco India 14

d) Cisco: Innovation through acquisition 14

7. Strengths and weaknesses of Cisco 16

a) Strengths 16

b) Weaknesses 16

PART 3: IMPLEMENTATION 17

8. Localization 17

a) Some Cisco activities in Bangalore 17

b) Presentation of Hyderabad 18

c) Hyderabad instead of Bangalore? 19

9. Our decision 20

a) Reasons 20

b) Advantages and disadvantages 20

10. Teaming 21

11. Planning: Steps to the Hyderabad localization 21

Introduction

Capital: New Delhi

Money: Rupee (INR) = 0.02 USD

On the top ten of the economic superpowers in the world

Growth rate: 9.4% (2006/2007)

5.7% (2009) due to the crisis

10% (2010) one of the fastest country to face the crisis

8.1% (2013) according to forecasting

(lemoci.com)

For a longtime, India was part of the British colonies. When the county took its independence in 1947, the government advocated the economic liberalization. Thus, it has become a more capitalist system and has grown quickly.

PART 1: INDIA

1. Foreign Policies

a) Foreign trade policy

Since July 4 1999, Indian government has undertaken big and major reforms in foreign trade policy. The “ Foreign Trade Policy in 2004- 2009 in which incorporates the Export and Import Policy, 2002-2007 this effort to make of India a Globalized country continues with Trade Liberalization. This means that they will continue eliminating licensing, quantitative and different restrictions and others type of control and regulations for Indian exports and imports.

The import regime by itself is a big obstacle for their way to import those products released, prohibited, restricted or centralized. Not only this barrier make difficult to export but also other impediments make difficult to product go inside India.

Despite the elimination of some trade barriers that has being experienced in the last few years, India has increased in a significant number of different barriers, such as use of labeling and certification requirements.

Indeed, the India’s foreign policies are based on few points. First of all, India intents to have “cordial relations” with other countries (economic or trade accords, solve conflits, etc.) Moreover, the country advocates for “the equality in conducting international relations” and its independence thanks to its participation to the Non-align Movement or NAM.

b) Foreign policy development

The awakening of India foreign Policy is one of the main events in world economic issues, so Asia is particularly involve in a role in the world economics.

The economy policy in India is very open, the participation degree of India exportations in a International level is 0,888% and imports 1,024%, distinguished by the very high export growth.

The main trader partners of India in relations importations and foreign policy are the U.S, China, Belgium, Switzerland, United Kingdom, United Arab Emirates, Hong kong.

Currently at this time their new trade policy is create an environment of trust, simplify import procedures and reduce transaction costs at the same time, neutralize the impact of taxes and tariffs, facilitate and enhance the availability of technology and infrastructure in all economic sectors, create incentives for agricultural exports and minor forest products, duty free imports of some products.

Intention of make India a global manufacturing center by the creation of an Export Promotion Council of services.

Elimination of import restrictions on used capital goods, all export of goods and services exempted from services tax.

c) Main point of the foreign policy

- Equitable International Economic order.

- Active member nation s of the NAM, the group of 77 and the G-15

- Strengthening regional cooperation as a member of the south Asia Association for Regional Cooperation, established in 1985.

- Member of the emerging bloc ( BRASIL,RUSSIA, INDIA, CHINA )

- 2009 India sign an agreement to reduce tariff

- Financial helps to neighbor’s countries like; Nepal, Bhutanese, Bangladesh, Maldives and others.

- Relationships with Arab countries in the Persian gulf and North Africa.

- Preferential tariff agreement with Mercosur

- Agreement with Chile, preferential tariff.

d) Features of the government's foreign investment policies and incentives offered by it

 No government approval is required for FDI in virtually all the sectors/activities, expect fro a small negative list formulated by the government

 The government has formulated «Sector Specific Guidelines for FDI», wherein investment up to speciefeid sectoral caps are covered under the automatic route, with a few exceptions

 FIPB considers proposals foor foreign participation that do not qualify for automatic approval

 Decisions on all foreign investment proposals are usually taken within 30 days of submitting an application

 Free repatriation of capital investments is permitted, provided the original investment (on a repatriable basis) was made in convertible foreign exchange. Further, free repatriation of profits

...